Hi, I'm a stay-at-home mum and I want to start selling craft items online. Does it make sense to register a sole trader before I actually start earning anything significant? Also, I receive child benefit and if I register as a sole trader, will I then have to pay NI contributions?
Registering early is a good idea and then you don't forget and get fined. You won't have to pay tax or NI until you are earning over the minimums. You can ask to be exempt from paying class 2 NI if you are earning under £6205. Read up on the consumer contract regulations as you will need to comply with these.
Thank you. I also found out most people, if earning under £6205, would pay class 2 on a voluntary basis to maintain state pension benefits. However, a parent who has children under 12 and is a parent registered for child benefit for the child is covered automatically for state pension benefits.